08/22/2011 Market Outlook (Descending Triangle?)

SHORT-TERM: MORE LIKELY TO CONTINUE LOWER

A Descending Triangle could be in the forming on the SPY intra-day chart, so more likely it will continue lower tomorrow. I’m not very sure because it looks that VIX is about to reverse down, so let’s see tomorrow. On a little bigger picture, I still believe that 08/09 lows will be broken to allow NYMO to form a positive divergence before a real bottom could be possible.

INTERMEDIATE-TERM: SPX DOWNSIDE TARGET IS 1,000, THE CORRECTION COULD LAST 1 TO 2 MONTHS